Deltek’s announcement today of its intent to acquire Maconomy has the potential to vault the vendor’s position as a potential leader in the project-based solutions (PBS) space. For midmarket organizations that deliver projects as a crucial part of their revenue generation, this is a good move.

While the focuses of the products share slight overlaps, the products themselves target different functionality and different markets. Deltek has long been a major vendor in the AEC and government contractor markets, while Maconomy, a Denmark-based PBS vendor, focuses on the public relations/advertising, legal, publishing and accounting markets.

What’s good:

Few overlaps – in customers and in industries.

Opening doors to new regions – Deltek has limited exposure in EMEA, and Maconomy has had a very difficult time penetrating North America.

Mature product sets – Deltek isn’t acquiring an idea but a full blown product. This will allow them to quickly pursue new customers in expanding regions.

What’s going to be a challenge:

Create visibility in existing markets in new regions – The struggles to gain penetration in the new regions won’t get any easier for either vendor; however, the solutions’ strengths may gain them easier entry.

Integration – Deltek is still working through integration challenges with some of its earlier acquisitions (namely, Welcom) and now adds another platform into the mix. The positive here is that Maconomy is fully functional on its own, and we don’t expect there to be huge overlap, if any.

Sales integration – Opening new regions and new industries can be a tough sales training challenge. Expect a few bumps.